HK stocks seen sliding further on fresh credit woes

HONG KONG, March 17 (Reuters) - Hong Kong stocks are likely
to tumble further on Monday, with analysts and brokers saying new
problems in the credit market are eroding confidence and could
possibly knock the main index to August levels.

Bear Stearns, hit by a sudden cash crunch, was being acquired
by JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) for $2 a share. Under the deal,
the Federal Reserve will provide special financing
[ID:nN16710089].

"We'll see a 1,000-point drop," said Francis Lun, general
manager at Fulbright Securities.

At that level, about 21,200 points, Hong Kong equities would
revisit the lows last seen in August when global markets reeled
from credit woes.

"The meltdown in U.S. financials is not unexpected, and the
turmoil in China will hurt airlines, tourism sectors," Lun said.

Independence protesters began burning shops and cars in the
Tibetan capital Lhasa last week, and Beijing said police were
prepared to tackle more unrest after crushing protests in which
Tibet's exiled representatives say as many as 80 people were
killed. [ID:nPEK267339]

The benchmark Hang Seng Index .HSI ended down 0.3 percent
at 22,237.11 on Friday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, finished
down 1.7 percent at 11,891.42.

STOCKS TO WATCH:

* China's Shenhua Energy Co Ltd (1088.HK: Quote, Profile, Research, Stock Buzz), the world's top
coal producer by market value, lagged forecasts by posting a 16.6
percent rise in 2007 earnings after it cranked out 16 percent
more of the hydrocarbon.

* Industrial and Commercial Bank of China (ICBC) (1398.HK: Quote, Profile, Research, Stock Buzz)
has signed a final agreement with South Africa's Standard Bank
(SBKJ.J: Quote, Profile, Research, Stock Buzz) to jointly set up a $1 billion global resource fund, a
person familiar with the matter said [ID:nSHA236244].

* China's Ping An Insurance (2318.HK: Quote, Profile, Research, Stock Buzz) is in the final stage
of talks to buy a major stake in the asset management arm of
Belgian-Dutch financial services group Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz), two
sources with direct knowledge of the situation told Reuters on
Friday [ID:nSHA304254].

* In the largest overseas purchase by a Chinese power firm,
Huaneng Group has agreed to pay S$4.2 billion ($3.04 billion) to
buy Tuas Power from Singapore state investor Temasek Holdings
[TEM.UL], the latter said on Friday [ID:nSP102842].

FACTORS TO WATCH:
* Nikkei .N225 drops 1 pct despite Fed move [.T]
* U.S. stocks-Index futures rise after Fed cuts discount rate[.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil slips after record week, heating oil surges [O/R]
* Dollar hits record low, Treasuries up on Bear news [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

KEY HK ADR MOVERS (by % change)

Hutchison Telecom (HTX.N: Quote, Profile, Research, Stock Buzz)(2332.HK: Quote, Profile, Research, Stock Buzz) +4.0

Aluminum Corp (ACH.N: Quote, Profile, Research, Stock Buzz)(2600.HK: Quote, Profile, Research, Stock Buzz) -8.5

Huaneng Power (HNP.N: Quote, Profile, Research, Stock Buzz)(0902.HK: Quote, Profile, Research, Stock Buzz) -8.9

Sinopec Shanghai Petroleum (SHI.N: Quote, Profile, Research, Stock Buzz)(0338.HK: Quote, Profile, Research, Stock Buzz) -9.8

China South Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -10.6
(US$1=HK$7.8)